Hindalco plans Rs 800 cr investment to set up battery foil mfg unit

Aluminium producer Hindalco Industries on Tuesday announced its plan to set up a battery foil manufacturing facility at Sambalpur in Odisha with an investment of Rs 800 crore to tap the fast-expanding electric vehicle market.

The facility, to be commissioned by July 2025, will initially produce 25,000 tonnes of the aluminium foil which forms the backbone of lithium-ion and sodium-ion cells, Hindalco Industries said.

The company also plans to significantly expand its capacity of making fine-quality aluminium foil which is used in rechargeable batteries, Hindalco said in a statement.

"Hindalco Industries is investing Rs 800 crore to build a new plant near Sambalpur in Odisha that will initially produce 25,000 tonnes of the resilient product which forms the backbone of Lithium-ion and Sodium-ion cells," the statement said.

By 2030, demand for battery grade aluminium foil in India is expected to grow manifold to 40,000 tonnes, primarily driven by mushrooming growth in gigafactories for advanced cell manufacturing, according to the company.

"We are seeing a fast traction in battery materials demand, driven by an impressive outlook for the electric vehicle and grid storage sectors. Raw material localisation is critical in such strategic sectors," said Satish Pai, Managing Director at Hindalco Industries.

"Hindalco is thus making various investments in battery materials and technologies towards building Atmanirbhar Bharat. Investment in this new battery foil mill is another such step in this direction," he added.

Additionally, the company is working closely with original equipment manufacturers (OEM) to co-develop and make critical components like battery enclosures, motor housings, busbars, structural and safety components, and lightweight load bodies, many of which are being designed and developed for the first time in India, Hindalco said.

The series of investments catalyse Hindalco's metamorphosis from a manufacturer of metal to a provider of high-tech metal solutions, it said.

This Sambalpur project will provide a thrust to the government's green initiative to reduce carbon emissions and build sustainable growth, it stated.

Hindalco said it has already achieved the technology breakthrough of manufacturing fine quality battery foils at its Mouda unit in Maharashtra, which is currently in the process of qualifying with lithium-ion cell manufacturers in India, Europe and the United States.

The new unit in Odisha will further augment capability to supply material to gigafactories across the world, it said.

The factory will be located alongside a 25-MW solar power plant, and can access additional solar energy from a 400-KV national grid connection. The unit will supplement the facility at Mouda, Hindalco said.

High performance aluminium foils are used by cell makers as a current collector for the cathode materials, Hindalco said, adding its deep understanding of metallurgy, extensive experience in sheet and foil rolling and access to its own aluminium metal gives it a formidable launch pad.

The company also said it is working on new coatings on the battery foils that will boost performance by delivering better adhesion, lower resistance, and reduced corrosion, and it will tap its R&D to provide tailor-made solutions for its customers.